France

Dexia Municipal Agency today (Monday) launched the first new French benchmark since 16 July, a Eu1bn seven year public sector obligations foncières issue that is due to be priced at the tight end of guidance.

Deutsche Postbank is today (Thursday) increasing its 3.125% July 2014 debut public sector Pfandbrief issue by Eu500m at a much tighter level than where the original issue was priced on 3 July. And Caisse de Refinancement de l’Habitat is the latest French issuer to join the recent tapping activity.

Compagnie de Financement Foncier launched the first publicly placed 10 year covered bond in Swiss francs for a non-domestic issuer in more than a year on Thursday.

Compagnie de Financement Foncier has begun putting in place the necessary documentation to establish a 144A MTN programme to sell its covered bonds into the US, and is hoping to overcome potential obstacles to its application. Meanwhile, the French issuer yesterday (Thursday) tapped a Swiss franc bond.

In brief: Société Générale SCF yesterday (Thursday) increased its Eu1bn 4% July 2016 obligations foncières by Eu250m.

Compagnie de Financement Foncier today (Wednesday) increased its October 2012 obligations foncières by Eu800m.

BNP Paribas yesterday (Thursday) priced a Eu1.25bn four year covered bond, the third to be launched off the issuer’s Home Loan programme this year, inside guidance. The completion of the deal ushers in a summer break from the covered bond market for the issuer.

BNP Paribas will today (Thursday) price a four year covered bond, its fourth of the year, at the ambitious level it was said to have been targeting. Meanwhile, Berlin Hyp nipped into the market.

French covered bonds issued outside the country's obligations foncières legislation could be brought under a new, dedicated legal framework if a high level initiative comes to fruition.

Several covered bond issuers are understood to be circling the market, hoping to pick off tighter levels. However, some are encountering resistance from investors, even if the European Central Bank’s purchase programme continues to underpin the market.

Caixa Geral de Depósitos yesterday (Thursday) priced its debut obrigações sobre o sector público, a Eu1bn five year benchmark that achieved strong pricing inside levels initially communicated to investors. Meanwhile Crédit Agricole sized a five year issue at Eu1.25bn yesterday afternoon.

Crédit Agricole put an end to weeks of speculation that it was preparing a new issue when it launched a five year covered bond this (Thursday) morning, and appears to have been rewarded for its patience with a tight level.